Surprise Strike Resolution Sends Shipping Stocks Plummeting

Shipping companies' stocks in Europe and Asia tumbled sharply after a sudden resolution of a port strike on the U.S. East and Gulf coasts. Major declines hit companies like A.P. Moeller-Maersk and Hapag-Lloyd in early trading in Europe and companies in Taiwan and Japan similarly fell.

In a dramatic turn of events, shares in several major shipping companies across Europe and Asia experienced a significant drop following an unexpected resolution to a port strike in the United States. Workers and port operators on the East and Gulf coasts reached an agreement to end the strike earlier than anticipated, causing market ripples.

The European market opened to see shipping titan A.P. Moeller-Maersk plummeting 7.7%, leading the decline in the STOXX 600 index, while Hapag-Lloyd tumbled 12.4%. Kuehne und Nagel from Switzerland also reported a 1.8% drop in its share value.

Meanwhile, in Asia, Taiwan's shipping firms Evergreen Marine, Wan Hai Lines, and Yang Ming Marine encountered declines of up to 10%, their steepest in months. Japanese companies Nippon Yusen, Kawasaki Kisen, and Mitsui OSK Lines similarly saw reductions ranging from 7% to 9%, marking them as the biggest losers on Japan's Topix index. According to Daishin Securities analyst Yang Ji-hwan, investors offloaded stocks in hope for a short-term recovery in freight charges, which have been on a downturn.

(With inputs from agencies.)